Connecticut Real Estate, My View

Back in the late 70's and early 80's, real estate agents did more than list, show and sell houses; we also qualified buyers for their mortgages. As a result, I have a few tidbits of financing info stored in my memory that come in handy now and again.

I have a sweet little condo on the market in the Oakdale area of Montville listed at $108,000. Yesterday I received an offer from an agent who's buyer is pre-approved with a national (think big) mortgage company.  A Little red flag appeared as soon as I received the offer; the pre-approval letter was for a VA Mortgage. I called the nice real estate agent and suggested that this particular condominium project has not been approved for VA Financing. I know that the complex is more than 50% owner occupied which is a good thing but I also know that more than 10% of the units are owned by an investor which is a bad thing for certain types of financing.  I ask the nice real estate agent if I can have permission to call the mortgage loan originator who is in New York (and who probably doesn't know where Oakdale, CT is on a map.) I get permission and make the call.  The originator immediately tells me that the condo association can't discriminate against a VA buyer.  Whoa Nellie!  Realizing that he must have misunderstood what I was saying, I go back to the beginning and suggest that since this complex is not approved for VA financing, we are going to have "issues".  He insisted there would be no problem but would look into it.  

I immediately called Phil Turner, with McCue Mortgage Company, a local lender who has been in the business as long as I have.  He's also a Pittsburgh native so we always have a lot to talk about.  Today we talked VA mortgages instead of the Pittsburgh Steelers.  Phil confirmed what I already knew. There is no way this or any buyer can purchase this condo without at least a 20% down payment. 

This annoys me.  The nice real estate agent and his nice buyer were duped by a loan originator who has no clue.  Today the clueless one calls me back and still doesn't understand why the buyer can't use VA financing on the condo.  I start to explain again that it has nothing to do with the veteran.  Simply, the condo complex is not approved for VA financing. At some point in the conversation I realize that I, a real estate agent, am trying to explain VA financing to a mortgage loan originator. 

Not good.